After battling with sluggish gambling revenues mainly due to the slowdown in the Chineses economy, gross gaming revenue (GGR) in Macau has jumped 2 percent year-on-year in May.
The gaming revenues of the global gambling hub had been taking a hit both in April and in March, consequently.
Earlier in May, the Gaming Inspection and Coordination Bureau reported that the year-on-year gross gaming revenue in Macau, for April fell by 8.3 percent to 23.5bn patacas ($2.9bn). It was by far the most significant revenue drop since June 2016.
Against all the odds, the gambling revenues for May increased to MOP25.95bn ($3.22bn). However, despite having a strong revenue in May, for the current year until now, Macau has generated 2 percent less in revenue as it had generated for the previous year.
While the GGR was down 8 percent, in March, it witnessed a 0.4 percent dip.
While analysts had predicted a dip in the growth rate, defying the predictions Macau gaming revenue shot up. The uptick in the revenue is attributed to the Labor Day Holiday in China.
The Chinese government’s new policies to develop Macau as a family holiday destination is also making it difficult for gambling operators in Macau to reap revenues.
As part of revised plans, China is now pushing gambling operators to develop non-gaming facilities to lure non-gambling tourists as well. For many gambling operators, it is not feasible to make massive investments to build non-gaming facilities which have comparatively very meager returns.